Greens Propose $25bn Plan to Nationalise 200 Coles and Woolworths Stores

The Australian Greens have unveiled a $25.1 billion proposal to forcibly acquire more than 200 Coles and Woolworths supermarkets and establish 424 government-owned stores under a new brand called Fair Go Grocers. Former Greens MP Max Chandler-Mather says the plan would save consumers 22% on average groceries, or $60 per week for a four-person household, by heavily discounting essentials and breaking what he calls a supermarket duopoly.

What the plan includes

The Green Institute proposes using forced divestiture laws to acquire 200+ major supermarket sites and three distribution centres from Coles and Woolworths. The government would then build 424 new supermarkets and 10 distribution centres, creating a non-profit network capturing about 20% of the commercial grocery market. A statutory authority would set prices monthly and establish minimum wholesale rates for suppliers, with members drawn from supermarket operations, nutrition, food science, and farming experts.

Claimed savings and public support

Chandler-Mather claims Fair Go Grocers would cut grocery bills by 22% on average, saving a family of four $3,134 annually. A YouGov survey found 94% of Australians were concerned about grocery costs, with 61% very concerned. Choice analysis showed grocery prices jumped 7% between May and June 2026 across all major chains. Chandler-Mather argues Labor’s anti-price gouging laws have had no impact on food prices.

Funding and implementation

The federal government would cover all capital costs including land, construction, and acquisition over five years at $25.1 billion. Chandler-Mather says stores would be self-funded after the initial investment and require no additional taxpayer cash. For comparison, the federal government currently spends about $24 billion annually on the Pharmaceutical Benefits Scheme. Stores would be located in areas of highest need.

Industry and political criticism

The plan draws inspiration from New York Mayor Zohran Mamdani’s pledge to build five government-owned grocery stores. Institute of Public Affairs chief economist Adam Creighton previously called Mamdani’s approach completely ridiculous. Critics worry government-run supermarkets could face shortages, queues, and inefficiency, pointing to past conflicts of interest when government-funded businesses competed with private operators.

Final Thoughts

The proposal reflects growing frustration over grocery prices but faces significant political and operational hurdles. With Coles (COL.AX) trading at A$22.87 and Meyka grading it B+, investors should watch regulatory developments closely, as forced divestiture would reshape Australia’s retail landscape.

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